Innomet Advanced Materials Limited is launching an IPO with a fixed price issue of ₹34.24 crores, consisting entirely of a fresh issue of 34.24 lakh shares. The IPO will open for subscription on September 11, 2024, and close on September 13, 2024. The allotment is expected to be finalised on September 16, 2024, with the listing on NSE SME anticipated on September 18, 2024.
The issue price is set at ₹100 per share, with a minimum application lot size of 1,200 shares. Retail investors will need to invest a minimum of ₹1,20,000, while high-net-worth individuals (HNIs) must apply for at least 2 lots, equating to ₹2,40,000.
Expert Global Consultants Private Limited is the book-running lead manager for this IPO, Skyline Financial Services Private Ltd is the registrar, and Prabhat Financial Services is the market maker for the Innomet Advanced Materials IPO.
Industry Outlook:
- The global powder metallurgy market, valued at $2.41 billion in 2022, is projected to grow at a 12.9% CAGR from 2023 to 2030, driven by additive manufacturing.
- By 2029, the powder metallurgy market is expected to reach $26.10 billion, with a steady 4.68% CAGR fuelled by demand in aerospace, defence, and healthcare.
Innomet Advanced Materials IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding working capital requirements of the company;
- Funding of capital expenditure requirements of the company towards purchase of machinery and equipment;
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company from banks and financial institutions;
- General corporate purposes; and
- Issue expenses
About Innomet Advanced Materials Limited
Incorporated in 1984, Innomet Advanced Materials Limited is a leading manufacturer of metal powders and tungsten heavy alloys, with two specialised divisions: Innomet Powders and Innotung. The company adheres to the ISO 9001:2015 Quality Management System Standard for the production and supply of ferrous and non-ferrous metal/alloy powders and tungsten heavy alloy components.
Innomet Advanced Materials, catering to various industries, offers a diverse portfolio of over 20 products, including copper, bronze, brass, nickel, tin, and stainless-steel powders. They excel in producing custom grades of metal and alloy powders containing iron, copper, nickel, tin, zinc, and cobalt, tailored to specific customer needs.
The company has established a strong domestic and international presence, supplying products to markets in India, US, UK, Germany, the Netherlands, Japan, Italy, New Zealand, Lebanon, and Brunei. As of March 31, 2024, Innomet Advanced Materials employs 56 professionals across various departments.
Peer Details
Innomet Advanced Materials Limited operates in a unique business segment with no directly comparable listed companies in India.
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Contact Details of Innomet Advanced Materials IPO
- Registered office: B-31, BHEL Ancillary Industrial Estate, Ramachandrapuram, Medak, Hyderabad 502032, Telangana, India
- Phone: +91 04023021726
- E-mail: cs@innomet.net
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 2899.19 | 2712.93 |
| Profit After Tax (PAT) (in ₹ lakh) | 251.91 | 321.55 |
| Current Ratio (x) | 1.24 | 1.71 |
| Net Worth (in ₹ lakh) | 1472.00 | 705.94 |
| Total Borrowings (in ₹ lakh) | 1331.29 | 1,209.5 |
| Return on Equity (%) | 21.37% | 111.53% |
| Return on Capital Employed (RoCE) (%) | 16.27% | 27.70% |
| Earnings Per Share (in ₹) | 2.65 | 11.15 |
Know before investing
Strengths
6Over 30 years of expertise in powder metallurgy and alloys.
ISO 9001:2015 certified for high-quality metal and alloy production.
Supplies products to over 10 international markets globally.
Two specialised divisions, Innomet Powders and Innotung, for diverse needs.
Strong R&D focus with collaborations on cutting-edge technologies.
Diversified product range with over 20 metal and alloy powders.
Risks
6Experienced negative cash flows in the past 3 financial years.
No long-term agreements with suppliers or customers were established.
Significant power disruptions could affect continuous factory operations.
Pending litigations involving ₹106.49 lakhs could impact financial condition.
High dependency on key personnel for business operations success.
Delays in receiving necessary approvals may disrupt business activities.
